Startups Are Running Out Of Cash, And Founders Need To Know When To Quit

Many startups that were able to raise a seed round are running
out of cash because of the Series A crunch.

Even though quitting is never an ideal situation, serial
entrepreneur and investor Howard A. Tullman recently
wrote on Inc that entrepreneurs need to know when enough is
enough.

"Sometimes you need to be smart enough to figure out how to quit
when you're ahead--even if you're actually way behind," he
writes.

Tullman says that there's no simple answer for determining when
it's time to throw in the towel, but he follows what he calls The
Rule of 3 Ds and 3 Fs.

"There are some things you've got to Do, Determine and Discuss,"
Tullman writes. "The Fs are Facts, Feelings, and Family."

The most important thing you have to do is face the
facts.

You then need to determine how you feel about the situation.
For example, if you frequently don't feel appreciated, it's time
to go.

Discuss your situation with your family because running a
business can be just as hard on them as it is on you.

"When things are
really rotten and we have no place else to turn, sadly, we often
don't turn to our families - we turn on them,"
Tullman writes. "[...] This is often the most real and
devastating damage caused by a failing business. It's the most
critical reason to get out when the time is right and to not
prolong the agony."